3M (MMM) closed at $125.97 in the latest trading session, marking a -0.13% move from the prior day. This move lagged the S&P 500's daily gain of 3.1%. At the same time, the Dow added 2.18%, and the tech-heavy Nasdaq gained 0.21%.
Prior to today's trading, shares of the maker of Post-it notes, industrial coatings and ceramics had gained 0.66% over the past month. This has lagged the Conglomerates sector's gain of 4.39% and the S&P 500's gain of 1.66% in that time.
Investors will be hoping for strength from 3M as it approaches its next earnings release. In that report, analysts expect 3M to post earnings of $2.41 per share. This would mark year-over-year growth of 4.33%. Our most recent consensus estimate is calling for quarterly revenue of $8.13 billion, down 5.63% from the year-ago period.
MMM's full-year Zacks Consensus Estimates are calling for earnings of $10.22 per share and revenue of $34.27 billion. These results would represent year-over-year changes of +0.99% and -3.06%, respectively.
It is also important to note the recent changes to analyst estimates for 3M. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 3M is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, 3M is holding a Forward P/E ratio of 12.34. For comparison, its industry has an average Forward P/E of 15.17, which means 3M is trading at a discount to the group.
Meanwhile, MMM's PEG ratio is currently 1.3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Diversified Operations stocks are, on average, holding a PEG ratio of 1.85 based on yesterday's closing prices.
The Diversified Operations industry is part of the Conglomerates sector. This group has a Zacks Industry Rank of 90, putting it in the top 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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